Bank Alfalah Auto Finance Calculator

How to Use This Calculator

To use the Bank Alfalah Auto Finance Calculator:

1. Enter the loan amount (the price of the car you want to purchase).
2. Select the loan term in years (typically 3-7 years for auto loans).
3. Enter the annual interest rate (check Bank Alfalah's current rates or use their standard rate).
4. Click Calculate to see your estimated monthly payment and total interest.

The calculator will display your monthly payment, total interest paid over the loan term, and the total amount repaid. You can also view a breakdown of your loan payments in the chart below the results.

Formula Used

This calculator uses the standard auto loan payment formula:

Total interest paid is calculated by subtracting the original loan amount from the total amount repaid.

Worked Example

Let's calculate a loan for a car priced at PKR 5,000,000 with a 5-year term at 12% annual interest.

1. Monthly interest rate = 12% ÷ 12 = 1% or 0.01
2. Number of payments = 5 years × 12 = 60 months
3. Using the formula: M = 5,000,000 [ 0.01(1 + 0.01)⁶⁰ ] / [ (1 + 0.01)⁶⁰ - 1 ]
4. Calculating the components:
   • (1 + 0.01)⁶⁰ ≈ 1.8157
   • Numerator = 5,000,000 × 0.01 × 1.8157 ≈ 90,785
   • Denominator = 1.8157 - 1 ≈ 0.8157
   • M ≈ 90,785 / 0.8157 ≈ 111,300
5. Monthly payment ≈ PKR 111,300
6. Total amount repaid = 111,300 × 60 ≈ PKR 6,678,000
7. Total interest paid = 6,678,000 - 5,000,000 = PKR 1,678,000

This example shows that for a PKR 5,000,000 loan at 12% interest over 5 years, you would pay approximately PKR 111,300 per month with a total interest of PKR 1,678,000.